Video Transcript: The Road To Wealth - Increasing Your Income & Budgeting Your Expenses

The reason that we started off the seminar with the what and the why, with the beliefs with the foundations to simply because if you don't make financial freedom or priority in your life, it's not going to happen. If you don't start with a burning desire to become debt free, it's not going to happen. If you don't start with the foundation of understanding your limiting beliefs, it's not going to happen. 

Remember, once you have the desire to get ahead in life, once you have the desire, the burning desire to become financially free, the how is going to start to come to you. So even though you may not be making ends meet right this minute, once you have the desire, and once you start following these steps, follow the process and you start paying yourself to 10%. The other 90% is going to have to somehow adjust itself. And even the poorest people have ways to save money. And I'm going to show you how in just a minute. 

But let's just review. So we said in the last lesson. This concept of net income. Net income is a difference between what you earn and what you spend. It's basically what you get to keep. And we said that if you want to be poor, it's very easy. All you have to do is spend more than what you earn. If you want to get nowhere, all you have to do is spend everything and live paycheck to paycheck and never save. 

If you want to be rich, you have to make yourself a priority. And you have to learn to put away 10% first and then live on the other 90% practically speaking, how do we do this? We have to learn to make a difference to distinguish between what our needs are, versus what are our wants. What do you guys think is the difference between these two? These two definitions. So let's go ahead and erase this part

Okay, so let's look at this we have to distinguish between two things. We have to determine what is a need versus a want, let this dry up a little bit. Need versus want, to help that comes through? trials in another color need versus want. Okay, so let's talk about this. For example. We all need what's the most essential need to survive on this planet?

Food. Right. Let's start off with food. How many kinds of food are there? All kinds of stuff, right? What's the most basic food? Bread maybe? All right. So if you go to the first of all, how many different supermarkets are there? Quite a few. And do they all sell the same thing at the same price? Not really, right? There's some expensive supermarkets and some cheaper supermarkets. 

Okay. How many different kinds of bread are there? All kinds of breads, right. How much would you say is the cheapest loaf of bread cost? What's the absolute cheapest? 79 cents? Okay? What do you think is the most expensive loaf of bread cost? By? Maybe $10. Okay, maybe it's got multi grains and organic and all kinds of stuff, right? And obviously, there's many other types in between. 

My only point is, I'm not saying you should live on rice and beans. I'm not suggesting what lifestyle you should live. All I'm saying is consider the fact of what you're spending where you are. And whether you're closer to this end of the range or closer to this end of the range. And even though you might think, well, what's the difference between buying a $2 loaf of bread or $3? For totally $1? My point is, maybe you could save $1. Okay. 

Let's try another type, you guys mentioned vegetables. How many types of vegetables are there? Well, there's a bunch of different types of carrots and lettuce and tomatoes and so forth. Right? Is there a difference in price between the cheapest and the most expensive? Yes. These could be organic. 

These could be whatever, maybe let's take for example, I don't know tomato. Don't know how much is one tomato the cheapest kind? No idea. 50 cents? I don't know. How much is maybe the most expensive? No idea and maybe $2? I don't know. The point is there's something we could go down the list. We could take meat and do the same exercise we can make the home spend all day talking about food, right? 

What's another category besides food. Maybe clothing. Okay. What are the different types of clothing? Maybe there's pants? Let's pick within pants maybe jeans? What's the cheapest pair of jeans gonna cost you maybe at Walmart or someplace like? 10,20$? What's the most expensive designer pair of jeans and a costume? Maybe two $300? Is there any room for savings? Maybe? 

Could you also save maybe by not buying these all the time? Maybe just find them once a year? I'm not saying again, what level of lifestyle you should live. I'm just saying. Is there a way to save some money? Probably. What else? can we read another category here? Maybe transportation? Maybe entertainment?

How many of you guys know poor people who spent a ton of money on bad habits. Smoking, alcohol, women partying all kinds of stuff, right? To say I don't have any money. But I'm gonna go drink my life away on a weekend on cigarettes or whatever. And I'm not condemning those things. I'm just saying. I see plenty of people with no money who somehow have money to spend on bad habits. Right? 

So my point here is the answer to your half of your question. You have to kind of change your lifestyle up a bit. At the very least, what you should do is over the last 30 days or over the next 30 days. Keep trying keep track of everything that you spend money on every penny. Keep track for 30 days and figure out exactly where's my money going? What kind of decisions Am I making? I told you guys a story about going to the supermarket and how you people buying $2 candies and $5 magazines and all kinds of stuff. Right? Where is every one of your dollars going? It was? Are all those dollars being spent as wisely as you can? 

Are they really worth you spending the money on that thing? Even the bottle of water what is the bottle water causing to $3, $5 doesn't really taste any different than another volatile water or some water off the tap? Sometimes not really. And yet So many people spend money on stuff that isn't really worth it. Right? They're just flushing it away. Literally. Again, I'm not condemning or saying what you should do, I'm just saying, between every one of these categories, there's a difference in what, where your money is going, right? So that's half of the equation, half of the equation is thinking about your expenses, and asking yourself, Is this a need? Or is this a want? Right?

The other half has to do with your income. There's several categories of money, how you can make money, and we're gonna discuss these in a minute. And there are several categories of money, where your money is going to have been allocated. And the trick is, you have to increase these categories. And you have to shrink these categories. The trick is, you have to make your net income go up, either by making more or spending less, but you have to find a way how to make your net income become higher. So let's think about some of these.

Where does our money go? Some of it goes to giving in that's a good thing. Some of it goes to other forms of giving that maybe are not so good. So we have to think about whether the giving that we're doing, is it going to a good place, or is it not going to a good place, just because somebody hands out their money and says, Hey, you know, I'm a nonprofit on my charity, give me some money doesn't mean you should hand them over money. No, you have to give wisely, right? The government wants their taxes. Right? The banks want their interest. 

The insurance companies want their premiums, and the rest of the merchants want you to spend. So is there a possibility that there's some room to analyze our budget and save somewhere here? There probably, yes. So the trick is, you have to live within your means. You have to control your expenditures, you have to make a budget. What's the definition of a budget? A budget is simply a spending plan. It means that if you spend impulsively, that's what control means. 

If you just go to the store without any plan, you're going to end up spending money that you didn't even think that you should have spent or wanted to spend. If he's one with the little list, like when you go to the grocery store and you say okay, my wife wants me to pick up bags and cheese and milk. And there's those are the only three things on your list. 

What do you think you should be buying when you're checking out at the grocery store? eggs and cheese milk? Should we be buying chocolate candies? Should you be buying? Snacks? Should we be buying other stuff that wasn't on the list? Probably not. Right? Why? Because it wasn't part of your plan. If it was part of your plan, you would have thought about it before going to the store. So let's look at what some of the advice that we get from the successful men. Peter J. Daniel says it becomes difficult to dream while you're under financial stress. Right? my strong advice to us to live within your means. 

The guy who wrote The Richest Man in Babylon says he who spends more than he earns is sowing the winds of needless self indulgent self indulgence, from which he is sure to reap the whirlwind of trouble and humiliation. And Paul Meyer says to enjoy financial success, you have to live within the limits of your resources that you allocate to your personal financial use, this is essential

Or you cant grow financially, no matter how high your income unless you take in more than what you spend. What's the temptation a lot of people think, well, if I could only get a pay raise, then my life would be better. But what did usually happen when we get a pay raise? You spend more right? You suddenly find new needs better needs better luxuries to enjoy. 

So the trick is you have to have a budget for you have to basically think ahead of time. What is it that is essential for me to live the lifestyle that I want and leave everything else out until you make savings a priority. 

The purpose of budgeting is controlling. You can't get into this trap, saying well I don't want to have any budget. I don't want to have any control. Just just to plan for your own benefit, like it says here who's going to design your budget? You are, right? You're not giving things up, you're gaining things, you're gaining control and ownership of your life. You're gaining financial freedom, you have to think about what are the things that I'm going to get by having this plan in place ahead of the temptations of spending this money. 

So the breakthrough here is don't confuse your needs, with your wants. If you don't have a plan ahead of time, guess what's going to happen, plenty of things are going to take your money, you know, there's, we're always going to have infinite ones. So don't spend your money on necessarily on things that are what?, just based solely on convenience, self gratification or appearances. Before you spend each dollar that it took you a long time to learn, make sure that it's worth what you're really spending it on. 

Now, a lot of people would only say that the only way to make money is to cut down on your lifestyle, right? They would say, Well, if you make 100, don't just spend 90, you spend the 80 spend 70. They're basically asking you to live on rice and beans. That's not what I'm saying. What I'm saying is, yeah, that's one way to save money. But to me, the better life, the better decision is you got to initially maybe cut back on some things that are necessary. But ideally, what you got to do is focus on how can I earn more, right, because you can't just sacrifice your life and your family forever. 

It's easier, believe it or not, to find ways to earn more than to cut a bunch of stuff out, you have to do a little bit of both. But the trick is that you have to increase your savings one way or the other. The best way to learn how to make more is to first learn to invest in yourself first. So how do we do this? How do we increase the amount of money that we can make? 

The first thing is you have to learn to invest in yourself. What does this mean, you have to grow? In your knowledge, you have to adopt a new mindset, you have to have new ideas, you have to learn new concepts, you have to adopt new attitudes, you have to have new understanding, you have to have a greater sense of commitment to increasing your earning capacity, then you have to find better ways how to make money. If you only work in a place where they pay you by the hour. Your limit is how many hours you can work, right? 

Find a different way how to make a different type of income. For example, if you start a business, or your business partners with someone you could share in the profits. If you invest, you can make money from investments. If you get into real estate, you can make rental income, you could also have passive income. You could even find other types of earned income. 

For example, if you get into sales, they pay you a percentage of a commission which is a percentage of sales. Right, you might find a second salary, maybe working at a second place in the weekends or in the afternoon, something that's flexible hours, but try to find a way how to make a little bit of extra money, not just limit yourself to spending less. 

To me, I'm going to teach you guys what is the best investment in the world. The best investment in the world is right here between your two ears, it's called yourself, your brain. Pick up a copy of the seminar called the Financial Freedom Seminar, which I wrote, pick up a copy of this book called bank on yourself. Revolution. 

There's a program that Peter J Daniels has called the destiny of the third millennium. It's a real investment in yourself because it helps you see life differently, you can understand all of his formulas, how he became successful. 

So the first thing is you have to be willing to invest in yourself. Unless you grow your money can't grow. You know, you have to really invest in yourself. 

Secondly, you have to realize that working is simply an opportunity to contribute to the world your talents, you know, work is not something bad.  Some people hate work. If you don't like to place your work, that's one thing. Just go find yourself another place to work. But the ability to work is actually a good thing. It's a blessing to have work. You know, it's just simply an opportunity to serve other people and to make money from it. If you already hit the limit of how much you can make, then expand your ability to earn expand your capacity, expand your knowledge base, expand your circle of influence, expand your you know the people that you work with, maybe move to a different city where there might be the opportunity, you got to find some ways to increase your ability to earn, become the best at what you are, maybe take a specialized skill or class or something that helps you become better at what you do. 

Start a business, you know, if you really want to be rich, the best way to do it is not as an employee, the best way to do it is to, at some point, take a risk and start your own business. Entrepreneurship might seem scary to people who haven't done it. But it really is the difference between a limited income and an unlimited income. And I always tell people, before jumping off and starting your own business, think about something that you like to do.

Go become an employee in that type of opportunity. For example, I've known people who said, I want to be an entrepreneurship and I'm going to start a food truck. Well, that's not a bad idea, except that if you've never even worked on food truck, and you know nothing about a food truck, how do you even know that's worth your time. 

So before you jumped into it, go become an employee, go tell a food truck, Hey, can I come and work here, I don't care if you get paid minimum wage, because you're not there for the money. You're there for what the learning experience. 

Once you're there, learn how to bind, learn how to sell, learn accounting, learn how to deal with customers, learn how to solve problems, learn how to become a leader, you know, learn, learn, learn, like that's the whole point of how we grow. You don't just put all your money in, throw it into some opportunities, like before you invest the money, invest the time, you know, figure out if it's even worth your time, I've seen plenty of people who take six months or a year opening a business and they shut down in three months. And they lose everything. Why? Because it wasn't something they even had any experience with.

So try to start something. Like I said, if you want to be an entrepreneur, this is I think, is one of the best investments I've ever made. It's a program by Peter J Daniels called Destiny the third millennium and has all of his formulas. The price tag might seem high to you, but consider this, it comes with two years of you being able to contact him and get business coaching directly. 

So what is you think, you know, a phone call with somebody who has lots of experience is worth to you. So you're not really investing just in a program or in cassettes, you're investing in a relationship, if this is something of interest to you, you know, tell us and we can help you out. There's another program that I discovered recently called Wake Up Warrior, this is something else that you can invest in, specially made for men, it really helps you unblock a lot of the things that are limiting you from growing, right now they have a special where you can participate in Wake Up Warrior for one month for 100 bucks, you know it's worth, it's worth your time investing in something like that checking it out. 

You can also invest in the stock market. And that basically makes you a part time partner or a small partner and a big business. You know, if you believe in a business that's growing, like Amazon, or Apple or Google or one of these things, you can put some money into those kinds of businesses, you know, so we're typically what I would advise people is don't just throw money blindly, and do a little bit of research into something that really fascinates you, so that you can stay on top of the trends of that industry. 

I teach a class, you know, a couple times a year, that's on investment. So if you're interested in participating in that class, you know, get in touch with us and subscribe, it teaches you how to invest in the stock market and an options. If you want to invest in real estate, that's not something that I personally teach. 

But, you know, there's plenty of classes out there that teach you how to invest in real estate, just the other thing I would advise you is be careful, you know, make sure it's something that's a passion for you. Because there's a lot of seminars that charge you can easily charge you 10,000 50,000 $80,000 a lot of people invest in these classes, and then they've got no money left to invest in the property. 

So, you know, make sure that the people who are teaching you have a proven track record of success before just taking their advice. And before you give them your money. 

I've known people who work in multilevel marketing, I would just say, before you get involved in those things, open up your eyes, you know, there's some multi level marketing companies which seem to have reasonable success, and there's other ones that are just solely based on recruiting people. 

I would say look at the product that they're offering don't just look at the compensation scheme. You know, before you get involved, make sure that the product is really worthwhile and that you would consume it even if you didn't recruit anybody. If it convinces you do a little bit more homework before jumping in with both feet. The point here is that earnings is only limited by your imagination. shouldn't, you know, there's ways to make more money for yourself either through making more money or cutting back on your expenses, but do a little bit of both. At the end of the day, sorry, this isn't. 

The point is that you have to invest in yourself more, you have to earn more money, you have to start a business or some type of investment. And you have to cut back on expenses that are unnecessary. And I'll explain to you where giving comes in a little bit further. But basically, the idea is that your net income is going to grow. And from that you're going to give towards charitable causes, tithing, in church, and so forth. 

So the conclusion of this lesson is, you have to generate a positive net income, whether it's through earning more, spending less and saving, but one way or the other, you got to save money. And that's, I hope I answered the previous question. Any other comments or questions up to this point? We have Oscar from Zambia, okay. And he says, How does one recover from financial failure? How does one start a new financial path, having come from a poor financial management lifestyle? Well, there's a book called, there's a book by Peter J Daniels, I'd recommend you go to his website, where there's two books, one of them he talks about his childhood, and how he was basically terrorized by a teacher who told him he couldn't do anything, how he overcame that. And there's another one where he talks about how to overcome financial stress. 

But what I will tell you from my personal experience, is, the first thing you have to do is you have to look at that failure, not as a failure, but as a learning opportunity. Every time we fail, it means that there's something we didn't understand before that happened. 

So rather than sitting there whining and moping about the money you lost, or the opportunity you lost, or how your life is over, you have to realize if you're alive, there's hope. And you have to kind of basically go back to the drawing board and write down and recreate everything that happened and say, Okay, so this is what happened, this is how it happened. 

This is a person I trusted, or this is the opportunity I try to look for, what did you do wrong? Where did you go wrong? Who did you trust, what information where you missing, there has to be something in there, that is gold for you. Because if you don't learn from your failure, what's going to happen is you're going to either stop and give up, or you're going to try again, and you're going to repeat the same exact mistake. 

So number one is don't give up. Right? You only fail when you stop trying, you only fail when you give up. So remember the story I told you about Peter Daniels. He went into business and he failed. He went into business and he failed. He went into business and he failed. But each time he failed, he failed in a different way. Why? Because he was learning from each of those mistakes. Until the fourth time he succeeded. There was something that I think we read in there before that I learned from Augmon Dino, he said, You will never fail if your desire to succeed is strong enough. 

So I know it's tough. And I know it hurts. And I know it's terrible to lose money. It really brings down a big weight upon your shoulders. But you have to learn to just basically shake it off. You have to kind of forgive yourself. You have to start saying, you know, human being enough, perfect. Okay. I just have to learn what was the mistake I made? Write it down. So you don't forget and you repeat it next time. But get back up. You know, you have to try again. You have to just basically get back up and look, lots of us fail. I'm divorced. I've lost all my money twice. You know, I've failed. 

But it's okay. I got married again. I've made money again. You know, I've invested again. And all you have to do is you just have to be willing to put yourself out there again. Because if you just give up then yeah, that you're a failure if you don't get back up. But look, look at people in the boxing ring. What do they do? You have to get back up and go start punching again. So you have to really believe in yourself. If you don't believe in yourself, nobody ever will either. 

So the first guy who has to invest in himself as you that's why I recommend a lot of these sources that I was saying To start with some of these basic things, if you don't, if you don't have $2,500, that's fine. You know, invest even in our course $25 Right now we're offering it for free, you can watch it online again. But if you want the book, you know, the slides are $25 You know, and if even that is a big problem, well email me and we'll figure out what we can do. But my goal is to make sure that you review this material over and over and over again, because the first time around that everything's gonna stick. 

But the second time, you'll pick up something you missed the first time and then the third time and the fourth time. I mean, that's how I got through all this stuff as I listened to the Peter Daniels videos and audios hundreds of times. I've listened to lots of other stuff hundreds of times. You just have to keep getting back up and keep learning something new. Any other questions?